Kansas Common Sense: Helping Community Bank Raise Capital, Increase Lending

Statement

The JOBS Act also includes a provision I supported that will expand the ability of small banks to raise capital and increase lending to local communities by raising the existing and outdated 500 "shareholders of record" threshold for Securities and Exchange Commission (SEC) registration.

Since 1964 community banks in Kansas have been limited in the number of shareholders they can have before they are required to register with the SEC. This registration process is costly so there is a strong incentive for a bank or small company to remain below the 500-shareholder limit -- liming the amount of capital a bank can raise and the amount of lending it can do to the community. I am pleased Congress took action to raise the shareholder limit -- something I originally proposed last year in my Communities First Act, S. 1600. This policy change is just one of the pieces of the puzzle and I will continue to push for full adoption of S. 1600 and other pieces of legislation to reduce regulatory burden and facilitate job creation.

Source